Individuals give property to others for free, which not only involves the interests of both the donor and the recipient, but also involves business tax, personal income tax, land value-added tax, deed tax, stamp duty and other related tax policies and tax preferences. For the parties who donate real estate for free, the key to correct tax treatment is to thoroughly understand the relevant tax policies. The following network xiaobian combines a specific case to analyze and explain. Zhang is a retired professor in a domestic university, and his children have settled in the United States for a long time. The couple's usual life is mainly taken care of by Zhang's niece Xiao Zhang. With the growth of age, the daily life of Professor Zhang and his wife becomes inconvenient. In order to take better care of Professor Zhang and his wife, Xiao Zhang and his wife moved into Professor Zhang's house from 20 10 to 1, and actually assumed the responsibility of support. In order to express his gratitude, Zhang * decided to give his idle property to Xiao Zhang free of charge on March 20 10, signed a gift contract and notarized it in the notary department. The value of the property indicated in the gift contract is 500,000 yuan. This property is an ordinary house purchased by Zhang * in 2007, and the purchase price at that time was 360,000 yuan. What taxes do donors have to pay? According to the Provisional Regulations on Business Tax and its detailed rules for implementation, if a unit or individual gives real estate or land use rights to other units or individuals free of charge, it shall be regarded as taxable and business tax shall be levied. However, according to the Notice of the Ministry of Finance of People's Republic of China (PRC), State Taxation Administration of The People's Republic of China, on Several Tax Exemption Policies for Personal Financial Commodity Trading Business Tax (Caishui [2009] No.65438 +0 1 1), individuals are directly responsible for giving their spouses, parents, children, grandparents, grandchildren, brothers and sisters real estate and land use rights free of charge. In this case, the recipient Xiao Zhang, as the niece given by the donor Zhang *, does not belong to the scope of relatives stipulated in the document Caishui [2009]11. If it can be proved that Xiao Zhang has a direct obligation to support Zhang, Zhang does not need to pay business tax. If it can't be proved that Xiao Zhang has assumed the obligation of direct support, Zhang X needs to calculate and pay the business tax on real estate gift. According to the Notice of the Ministry of Finance of People's Republic of China (PRC), State Taxation Administration of The People's Republic of China, on Adjusting the Business Tax Policy on Individual Housing Transfer (Caishui [2009] 157), if an individual sells ordinary housing that has been purchased for less than five years from 201KLOC-0/,business tax will be levied according to the difference between the sales income and the purchase price. As the free gift belongs to the business tax, it is regarded as a sales act, so the provisions of document Caishui [2009]157 are also applicable. Regardless of the relevant tariffs (the same below), Zhang * needs to pay business tax (50-36)×5%÷2=0.35 (ten thousand yuan). In this case, although the object of Zhang's real estate gift is his niece, according to the current law, the niece does not belong to the category of immediate family members. So, does it mean that Zhang * needs to calculate and pay the land value-added tax on the donated property? As the premise of levying land value-added tax on personal property gift is levying land value-added tax on property sales, the Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance of People's Republic of China (PRC) on Adjusting Tax Policy on Real Estate Transactions (Caishui [2008] 137) stipulates that since June, 2008 165438+ 10/day, Therefore, according to this regulation, although the object of Zhang's real estate gift is not his immediate family, Zhang's gift behavior does not need to pay land value-added tax. In addition, since Zhang X Grant signed a gift contract with Xiao Zhang, according to the Provisional Regulations on Stamp Duty and its detailed rules for implementation, Zhang X Grant should add 25 yuan at the tax rate of 0.5 ‰ according to the value of the gift property specified in the gift contract when signing the gift contract. As for Zhang *, since the property was donated for free and no income was obtained, Zhang * does not need to pay personal income tax on the property donation. What taxes does the recipient need to pay? In this case, as the donee of the real estate, does Xiao Zhang need to pay personal income tax? According to the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Personal Income Tax on Individual Donation of Houses (Caishui [2009] No.78), the property owner gives the property to his spouse, parents, children, grandparents, grandchildren, brothers and sisters, or a supporter or supporter with direct support or maintenance obligations, and obtains the legal heir and will of the property right according to law after the death of the property owner. In addition to the above circumstances, if the property owner gives the property to others free of charge, the personal income tax will be calculated and paid according to the "other income" item for the donation income obtained by the donee. It can be seen that although the taxes mentioned in Caishui [2009] No.78 and Caishui [2009]11are different, the provisions on the scope of tax exemption are similar. Since Xiao Zhang is the niece of the donor Zhang *, and is not within the scope of relatives stipulated in the document, if it can be proved that Xiao Zhang has assumed the obligation of direct support for Zhang *, Xiao Zhang does not need to pay personal income tax on the donated property. Otherwise, the donated property belongs to Xiao Zhang's "other income", and Xiao Zhang needs to pay 50×20%= 10 (ten thousand yuan) personal income tax as required. In addition, according to the Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Strengthening the Tax Administration of Personal Donation of Real Estate for Free (Guo Shui Fa [2006]144), individuals who donate real estate for free shall collect the deed tax in full from the donee. Xiao Zhang should calculate and pay the deed tax in full according to the local tax rate and the value of the donated property indicated in the donation contract, and at the same time, 25 yuan should be applied at the stamp duty rate of five ten thousandths when signing the donation contract. Other issues that need attention are as mentioned above. What materials do Zhang * and Xiao Zhang need to submit to enjoy the above tax benefits? Document Guo Shui Fa [2006] 144 stipulates that if a real estate is donated for free, the donee shall submit the donation certificate of the property owner and the donee's acceptance certificate of the donation, or the certificate of the donation contract handled by both parties, as well as the property ownership certificate and the registration form of the individual's donation of real estate for free. The above certification materials must be submitted in originals. That is, Zhang * and Xiao Zhang should submit three originals of the materials. In addition, according to the provisions of Caishui [2009] 1 1 and Caishui [2009] No.78, Zhang * Grant and Xiao Zhang should also provide valid identity documents; The original notarial certificate of dependency or maintenance relationship issued by the notary office, or the certificate of dependency or maintenance relationship issued by the township government or the subdistrict office. The above is the relevant knowledge compiled by Bian Xiao for everyone. I believe you have a general understanding through the above knowledge. If you encounter more complicated legal problems, please visit the website for online consultation.
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Different from the inheritance and transfer of real estate, the gift of real estate also needs to pay deed tax. The specific process and cost are as follows. First of all, a written house donation contract, that is, a donation book, needs to be concluded between the real estate donor and the donee. Then, the donor and the recipient should take the gift and the property certificate of the house, and at the same time go to the notary office where the house is located to notarize the house and the house. Provisions on Paying House Gift Tax Recently, State Taxation Administration of The People's Republic of China issued the Notice on Strengthening the Tax Administration of Personal Donation of Real Estate in the Real Estate Market, which strengthened the tax collection and management from three aspects: donation behavior, external sales of donated houses and follow-up management of donation behavior. State Taxation Administration of The People's Republic of China requires that taxpayers must provide relevant supporting materials, fill in the Registration Form of Personal Donation of Real Estate and make a declaration for donation without compensation before the tax authorities can go through the formalities of tax reduction and exemption for donation without compensation. In order to prevent buyers and sellers from using false gifts to evade the business tax in the gift process, the donated houses are sold to the outside world, and the free gifts are divided into general gifts (including inheritance, will, divorce, support and immediate family gifts) and other free gifts, and how to determine the purchase time of the houses obtained from these two free gifts is distinguished. If an individual donates real estate, the tax authorities shall collect the deed tax from the donee in full, and affix the seal of "individual donation without compensation" on the taxpayer's deed tax and stamp duty payment certificate. State Taxation Administration of The People's Republic of China makes it clear that if the donee obtains the real estate donated by the donor for free and then transfers the real estate again, when paying personal income tax, the balance of the property transfer income after deducting the tax paid in the process of accepting the donation and transferring the house and related reasonable expenses is taxable income, and the personal income tax is calculated and paid at the tax rate of 20%. It is understood that in the first half of this year, the state adjusted the tax policies related to individual housing sales, and the speculation in second-hand housing in the real estate market decreased, but at the same time, a large number of new free housing gifts appeared. Part of it is that the buyers and sellers of houses cover up the buying and selling transactions in the form of fake gifts to avoid taxes. The purpose of State Taxation Administration of The People's Republic of China's posting this time is to solve the problem of tax evasion caused by fake gifts, strengthen the tax management of personal donation of real estate in real estate transactions, and plug tax loopholes.